05:56 AM EDT, 08/28/2025 (MT Newswires) -- (Adds U.S. Commercial Banking and Wealth Management and Capital Markets in paragraphs 8, 9)

CIBC (CM.TO, CM), the second-to-last of Canada's six big banks to report quarterly earnings, was at last look up 3% and at a fresh 52-week high in US pre-market trade Thursday as it reported an earnings and revenue beat for the third quarter, boosted by a strong core business performance.

For Q3, CIBC posted adjusted EPS of $2.16 versus $1.93 a year ago. FactSet had forecasted $2.01.

Reported Diluted Earnings per share was $2.15, up from $1.82 a year earlier.

It had revenues of $7.25 billion compared to $6,604 million. FactSet had forecast $7,052.8 million.

Results for the third quarter of 2025 were affected by the following item of note resulting in a negative impact of $0.01 per share: $11 million ($8 million after-tax) amortization of acquisition-related intangible assets.

On core business performance, CIBC said Canadian Personal and Business Banking reported net income of $812 million for the third quarter, up $119 million or 17% from the third quarter a year ago, primarily due to higher revenue, partially offset by a higher provision for credit losses and higher non-interest expenses. Adjusted pre-provision, pre-tax earnings were $1 ,551 million, up $241 million from the third quarter a year ago, as higher revenue was partially offset by higher adjusted non-interest expenses. It said the higher revenue was mainly driven by a higher net interest margin and volume growth. Adjusted non-interest expenses were higher mainly due to higher spending on technology and other strategic initiatives and employee-related compensation.

Also, Canadian Commercial Banking and Wealth Management reported net income of $598 million for the third quarter, up $97 million or 19%, primarily due to higher revenue, partially offset by higher non-interest expenses. Adjusted pre-provision, pre-tax earnings were $844 million, up $114 million, as higher revenue was partially offset by higher non-interest expenses.

Among other divisions, U.S. Commercial Banking and Wealth Management reported net income of $254 million (US$186 million) for the third quarter, up $38 million (US$27 million or 17%) from the third quarter a year ago, primarily due to higher revenue and a lower provision for credit losses, partially offset by higher non-interest expenses. Adjusted pre-provision, pre-tax earnings were $344 million (US$252 million), up $23 million (US$17 million or 7%) from the third quarter a year ago, as revenue growth was higher than growth in adjusted non-interest expenses. In commercial banking, higher revenue was primarily due to higher volumes. Higher revenue in wealth management was primarily due to higher net interest margin and fee-based revenue from higher average AUM balances due to market appreciation. Adjusted non-interest expenses increased mainly due to higher performance-based and employee-related compensation.

Capital Markets reported net income of $540 million for the third quarter, up $251 million or 87% from the third quarter a year ago, primarily due to higher revenue, partially offset by higher non-interest expenses and a higher provision for credit losses. Adjusted pre-provision, pre-tax earnings were up $221 million or 39% from the third quarter a year ago due to higher revenue from our global markets and corporate and investment banking businesses. Global markets revenue was up driven by higher financing revenue and higher fixed income trading revenue. Corporate and investment banking revenue was up driven by higher underwriting and advisory activity and higher corporate banking revenue. Expenses were up due to higher performance-based and employee-related compensation, and higher spending on technology and other strategic initiatives.

Among other highlights, provision for credit losses was $559 million, up $76 million from the same quarter last year.

CIBC's CET1 ratio was 13.4% at July 31, 2025, compared with 13.4% at the end of the prior quarter. Its leverage ratio and liquidity coverage ratio at July 31, 2025 were 4.3% and 127%, respectively.

Separately, CIBC announced its intention to purchase for cancellation up to 20 million common shares under a normal course issuer bid, subject to the approval of the Toronto Stock Exchange. Common shares that may be purchased for cancellation represent approximately 2.2% of outstanding common shares as at July 31, 2025.

Board of Directors declared a dividend of $0.97 per share on common shares for the quarter ending October 31, 2025 payable on October 28, 2025 to shareholders of record at the close of business on September 29, 2025.

Victor G. Dodig, CIBC's President and Chief Executive Officer, said. "In a dynamic environment, our proactive and disciplined approach to managing our business, robust capital position, and balance sheet strength continue to serve us well."

Shares in CIBC rose 1.7% and hit fresh 52 week highs in Canada yesterday.